Which statement about workers' compensation financing is correct?

The correct statement regarding workers' compensation financing is that accident costs are considered business expenses. Workers' compensation is a system designed to provide benefits to employees who are injured on the job or become ill due to work-related conditions. The costs associated with injuries, such as medical expenses and wage loss, are treated as business expenses for employers. By viewing these costs this way, employers can budget for them and incorporate them into their overall financial planning.

This perspective emphasizes the responsibility of employers to ensure a safe workplace and manage the financial impact of workplace injuries. While some employers may choose to self-insure or purchase insurance from a state fund, those options are not universal requirements, making it inaccurate to state that all employers solely self-insure or must purchase insurance from a state fund. Additionally, employee contributions are generally not a requirement for funding workers' compensation benefits, as these costs are primarily managed through employer premiums or self-insurance funding.